3 Under-the-Radar Gaming Stocks You Can Buy and Hold for the Next Decade

Along with the rest of the tech world, gaming companies have suffered from macroeconomic declines that have stunted consumer spending in 2022. As a result, multiple companies in the industry have experienced significant dips in their share prices since January. However, that doesn't mean many of these companies aren't excellent stocks to add to your portfolio for the long term. 

Considering the gaming industry is worth $195.65 billion and is expected to see a compound annual growth rate (CAGR) of 14.1% until at least 2030, according to Grand View Research, now might be the perfect time to invest in the market.

Here are three of the best under-the-radar gaming stocks you can buy at bargain prices and sit back while they rise over the long term. 

1. Nvidia

With nearly 80% market share in the graphics processing unit (GPU) industry, Nvidia (NVDA 3.71%) has become a dominating player in PC gaming. Its GPUs power millions of gaming PCs worldwide, providing the top-tier graphics necessary to run the world's most intensive games. The company has been one of the hardest hit this year, with its stock plunging 49% year to date.

Its 2022 declines were primarily fueled by sharp reductions in consumer spending in the PC market. However, Nvidia has an excellent outlook over the long term, thanks to its efforts to diversify its business.

In addition to GPU sales, the company partnered with Nintendo in 2017 to power its Switch game console with Nividia's system on a chip. As of Sept. 30, the Nintendo Switch had sold 114.33 million units, making it one of the best-selling consoles in history.

Considering Nintendo is known to be working on the next-generation Switch, which it could reveal as early as 2023, Nvidia is in a prime position to receive a sustained boost to revenue from console sales for the next several years.  

Moreover, Nvidia's data center business has become incredibly promising over the last few years. Along with the segment's revenue rising 30% year over year to $3.8 billion in its latest quarter, a recent partnership with Microsoft's cloud computing platform Azure to build a new supercomputer could go a long way in terms of sustained revenue growth.

As a result, Nvidia's long-term outlook makes it an excellent under-the-radar gaming stock worth an investment. 

2. Corsair Gaming 

Just last month, Corsair Gaming (CRSR 1.74%) had looked like a beaten-down casualty of the stock market sell-off in 2022, with its shares down over 40% year to date in the first week of October. However, the company's stock has risen 35% since Nov. 3 after posting glowing Q3 2022 earnings. 

The company, best known for its premium PC gaming accessories such as mice, keyboards, headsets, and PC cases, saw revenue of $311.77 million in its third quarter, a year-over-year decline of 20.3%. However, the figure beat Wall Street expectations by $4.65 million, which prompted the rally. 

The company is largely dependent on the GPU market, as the more gaming PCs being built, the more Corsair accessories sold. Corsair suffered from GPU shortages in the first half of the year, but a recent influx in availability, a sharp decline in pricing, and new offerings from Nvidia, AMD, and Intel could provide the company a boost to revenue going forward.

Additionally, Corsair moved into the gaming laptop market this year with its A1600 Voyager premium streaming notebook, developed in partnership with AMD. The company hasn't released sales figures for the device, but a venture into the $18.4 billion market, expected to see a CAGR of about 4.5%, is promising.

3. Warner Bros. Discovery 

While Warner Bros. Discovery (WBD -1.07%) is not often thought of as a gaming company, known more for its film and TV offerings, the entertainment titan is home to some top-rated game franchises. In 2022 alone, the company released LEGO Star Wars: The Skywalker Saga, MultiVersus, and Gotham Knights, with a promising slate for 2023. 

The company has suffered a tumultuous year, with its stock plummeting 57% year to date as an expensive merger and restructuring costs ate into its earnings. However, Warner Bros. Discovery's average 12-month price target of $20.74, 92% above its current price, suggests the company is worth watching closely.

In terms of games, the company has seen significant gains this year. In Q2 2022, Warner Bros. Discovery's content revenue rose 3% to $2.6 billion, which the company primarily attributed to high gaming revenue from the release of LEGO Star Wars: The Skywalker Saga. Additionally, its launch of the online game MultiVersus has been a hit, reaching 20 million players in August after launching on July 19.

With the highly anticipated launches of games such as Harry Potter-themed Hogwarts Legacy in February 2023 and Suicide Squad: Kill the Justice League in late 2023, Warner Bros. Discovery could be in for healthy growth in its gaming business. Along with a price-to-earnings ratio of 12.10 as of Nov. 18, now might be an excellent time to invest in the entertainment company.